On September 20, 2005, Governor Rick Perry issued a proclamation declaring a disaster due to the effects of Hurricane Rita, certifying that Hurricane Rita poses a threat of imminent disaster along the Texas Coast beginning September 20, 2005, and directing that all necessary measures both public and private as authorized under Section 418.015 of the Texas Government Code be implemented to meet that threat. The proclamation also states that, as provided in Section 418.016 of the Texas Government Code, all rules and regulations that may inhibit or prevent prompt response to this threat are suspended for the duration of the incident.
With the potential for devastation resulting from Hurricane Rita and the possible relocation of hurricane victims and other personal hardships sustained by residents of the Gulf Coast, the Texas Department of Insurance reminds carriers of their obligations pursuant to Section 5 of Article 21.49-2U of the Texas Insurance Code. These obligations apply to the writing of personal insurance in this state, including the writing of personal insurance for Texas residents affected by the hurricane.
Section 5 requires that an insurer provide reasonable exceptions to the insurer's rates, rating classifications, or underwriting rules for a consumer whose credit information has been directly influenced by a catastrophic illness or injury, by the death of a spouse, child, or parent, by temporary loss of employment
TDI urges insurers to avoid placing additional burdens on victims or evacuees of Hurricane Rita and encourages insurers to accept verbal requests in lieu of written as stated in Article 21.49-2U.
Article 21.49-2U applies to personal insurance which includes personal automobile, residential property, residential fire and allied lines insurance policies; or a noncommercial insurance policy covering a boat, personal watercraft, snowmobile, or recreational vehicle.
Questions regarding this bulletin may be directed to the Property and Casualty Program, at 512-322-2266 or gary.julian@tdi.state.tx.us.